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Global capital mkts see renewed confidence amid rate pivot, says Citi

Moreover, the demand for Debt Capital Markets (DCM) products is underpinned by stable levels of bond maturities, comparable to 2024

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For high-quality assets, investor interest remains exceptionally strong, reflecting confidence in the region’s financial resilience and opportunities (File Image)

Anjali Kumari Mumbai

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Inaugural and corporate issuers are returning to the global capital markets, reflecting renewed confidence and signs of recovery as interest rates pivoted toward the end of the year, a senior executive from Citi said during a roundtable.
 
“There is cause for optimism in 2025, as activity picks up… We expect to see continued activity in the high-yield space and this will be an interesting space to watch,” said Jan Metzger, Head of Investment Banking, Japan, Asia North and Australia (JANA), and Asia South.
 
Moreover, the demand for Debt Capital Markets (DCM) products is underpinned by stable levels of bond maturities, comparable to 2024. This natural demand, coupled with increasing volumes anticipated for 2025, further supports the sector's positive outlook.
 
 
“There are similar levels of bond maturities in 2025 as compared to 2024, and a good underpinning of natural demand for DCM products. We also expect volumes to be up by quite a bit in 2025,” he said.
 
For high-quality assets, investor interest remains exceptionally strong, reflecting confidence in the region’s financial resilience and opportunities, Metzger said.
 
Commenting on the equity capital market (ECM) trends, Metzger said total issuance in Asia was up 84 per cent to $150 billion and India accounted for 48 per cent of the total volume, largely driven by IPOs.
 
“Looking ahead, we expect MNCs to be more flexible with their operations and more spin-offs of Asian assets. We have seen that in a number of cases including in India with the Hyundai spin-off that we worked on recently,” Metzger said.
 
Amol Gupte, Asia South Head said the region which includes Asean and the Indian subcontinent – are key markets for Citi.
 
“Asia South creates between 20-25 million jobs, half of those are in India, and half of those outside India. The GDP in this geography of about $8 trillion is also divided in half between India and Asean,” Gupte said.
 
Asia South accounts for around 7 per cent of Citi’s global revenues and is the fastest growing geography for Citi. 

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First Published: Jan 21 2025 | 11:12 PM IST

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